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Chapter 1: Why Ethics Matter

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Chapter 1: Why Ethics Matter

12 problems · 0 figures

1-1 §1.1 source ↗

Which of these concepts relates to utilitarianism?
  1. a.
    consequences
  2. b.
    actions
  3. c.
    character
  4. d.
    duty

Answer

A. consequences

1-2 §1.1 source ↗

According to the Greek system of logic introduced by Socrates, normative ethical theories ultimately are grounded in reason.
  1. a.
    True
  2. b.
    False

Answer

A. True

1-3 §1.1 source ↗

Explain why ethical responsibilities go beyond legal compliance.

Answer

Behaving ethically requires that we meet the mandatory standards of the law and then go above and beyond them to recognize that an action may be legal but we personally may consider it unacceptable. Ethical reasoning often is more topical than law and reflects the changes in consciousness that individuals and society undergo. Often, ethical thought precedes and sets the stage for changes in the law.

1-4 §1.1 source ↗

Describe the difference between normative and descriptive ethical theories.

Answer

Normative ethical theories are philosophical theories based on reason that tell individuals how they ought to behave. Descriptive ethical theories are based on scientific evidence describing how people tend to behave in a particular context. The theories discussed in this book are normative.

1-5 §1.2 source ↗

Which of the following is not a stakeholder?
  1. a.
    the media
  2. b.
    corporate culture
  3. c.
    the environment
  4. d.
    customers

Answer

B. corporate culture

1-6 §1.2 source ↗

According to Milton Friedman, a company’s social responsibility consists solely of bettering the welfare of society.
  1. a.
    True
  2. b.
    False

Answer

B. False

1-7 §1.2 source ↗

What is corporate social responsibility (CSR)?

Answer

CSR is the practice of viewing a business within a broader context, as a member of society with certain implicit social obligations, rather than considering the maximization of shareholder wealth as a company’s sole purpose and objective.

1-8 §1.2 source ↗

Describe a practical way to prioritize the claims of stakeholders.

Answer

In three columns, list stakeholders in order of perceived priority, their perceived interests, and the likely impact of the business decision on them. This will aid comprehension of the decision’s impacts as well as provide justification for the course of conduct ultimately chosen.

1-9 §1.2 source ↗

Describe how a company’s ethical business practices affect its goodwill.

Answer

The ethical behavior of managers has a positive influence on the value of a variety of components affecting the company’s overall goodwill, including its brand, its workforce, and its customer relationships. Positive goodwill generated by ethical business practices, in turn, generates long-term business success.

1-10 §1.3 source ↗

Family is generally a strong influence on our ethical standards.
  1. a.
    True
  2. b.
    False

Answer

A. True

1-11 §1.3 source ↗

Which normative ethical theory supports the idea of holding multiple ethical standards?
  1. a.
    deontology
  2. b.
    utilitarianism
  3. c.
    virtue ethics
  4. d.
    none of the above

Answer

D. none of the above

1-12 §1.3 source ↗

Describe the benefits of having a single ethical standard.

Answer

Having a single ethical standard maximizes ethical behavior no matter who the other party is and supports an internally consistent rule of behavior toward all family, friends, customers, clients, and others with whom we interact.

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Problems and answers are adapted from Business Ethics by Stephen M. Byars and Kurt Stanberry, OpenStax, and are used under the CC BY-NC-SA 4.0 licence. Access for free at https://openstax.org/books/business-ethics/pages/1-introduction. Illustrations: Copyright Rice University, OpenStax, under CC BY-NC-SA 4.0 license. This adaptation is released under the same licence, is non-commercial, and is neither affiliated with nor endorsed by OpenStax or Rice University.